Cobb EMC counsel responds to MDJ
April 23, 2010 12:00 AM | 746 views | 7 7 comments | 8 8 recommendations | email to a friend | print
DEAR EDITOR:

Saturday's Around Town column in the Marietta Daily Journal, headlined "Rain on Brown's Parade: Appeals ruling major setback for EMC board" was rife with errors. As one of the two speakers at the Cobb EMC meeting that was the focus of the column, I feel compelled to respond.

First, let's be clear. Neither Judge Tom Cauthorn nor I represent (Cobb EMC head) Dwight Brown, as the column erroneously stated. Judge Cauthorn worked with the Special Litigation Committee of the board of directors of Cobb EMC, which did an exhaustive review of the relationship between Cobb EMC and Cobb Energy and reported those findings to the court. I represent the co-op and an independent committee of the board, none of whom has been accused of any wrongdoing. Brown does not even serve on the co-op board or on either board committee represented by Judge Cauthorn or myself.

The column implies that Cobb EMC's board is opposed to mail-in balloting. This is simply not true. The board uniformly supports open democracy and member voting by mail and is on record in several places - including the MDJ and under oath in court - stating this position.

The board was in support of moving forward with the member meeting to determine if we could use mail-in ballots, and the plaintiffs blocked it in court. It is reasonable to assume we would have already held elections if the plaintiffs had not appealed a procedural point.

The notion that the court of appeals ruling of last week is a death knell for Cobb EMC's position on the elections process or its board is completely misleading. The court of appeals decision was, at most, a mixed bag for the parties. Most of the bylaws in question were not disturbed by the ruling. On the matters that were reversed, the court of appeals made several mistakes, most notably:

* It is not true that the bylaws require the proxy master to vote before a meeting in violation of the settlement agreement. The proxy master would not vote until the meeting.

* It is completely false to say a member cannot change his or her vote after they have decided to vote by proxy. Georgia law clearly allows anyone to revoke a proxy at any time prior to the actual vote and to participate in person. It is a position we support and have so stated on numerous occasions.

* The appeals court ruling is based on the erroneous assumption that all members live in Cobb County, which they do not. Cobb EMC's service territories include locales 200 miles or more away from its Marietta headquarters. If everyone who lives in these distant areas is required to vote in person rather than by proxy, the likelihood of their participation is slim. Plaintiffs are trying to hold down the number of members who would participate in board elections because the fewer participants, the more probable it becomes that a small group of dissidents can control the process.

These are all very close legal questions. Cobb Superior Court Judge Stephen Schuster, a well-respected, thoughtful judge who has been in charge of this case since the beginning, agreed that Cobb EMC's board had acted in a reasonable and pro-democratic manner. A court of appeals judge merely ruled that the pro-democratic move by the board violated a settlement agreement. It is unfair for the MDJ to accuse Judge Schuster of getting it wrong - because he didn't. The board will continue to fight for all members' rights to vote and will petition the Georgia Supreme Court to review the lower court's ruling.

Finally, to accuse anyone of hiding the court of appeals ruling at last week's luncheon is simply misleading. Judge Cauthorn and I were there to report on our investigations. The appeals court ruling concerned only the procedures to be used at a special meeting of members. It had nothing whatsoever to do with our presentations.

It should also be noted that members of the media were present at the meeting and the appeals court ruling was posted on the Internet before our presentations ever began. It was information that was widely known and the floor was open to any questions. The topic was never brought up by anyone - including a representative of the MDJ whose name appears on the Around Town article.

Was he hiding something? An agenda, perhaps?

Dwight Davis
Atlanta

Dwight Davis is legal counsel for Cobb EMC and is a senior litigation partner at King & Spalding, LLP. He is a fellow of the American College of Trial Lawyers and a member of the Georgia and New York State Bar Associations.

Editor's note: As all silk stocking lawyers like Mr. Davis know, and as all country lawyers know, it is impossible to ask questions about a court ruling you have never read or heard about.

MDJ publisher Otis Brumby Jr. attended the lunch meeting referred to and spoke with CEO Dwight Brown, EMC vice president for public relations Sam Kelly, several EMC/Brown lawyers, at least two EMC board members, EMC public relations spokesperson Carol Cookerly and her associate. In addition, he ate lunch at the same table as Dean Alford, a member of the board of directors of Cobb Energy and a major stockholder in the controversial for-profit company before it was shut down as part of the court settlement. What was left became a wholly-owned subsidiary of Cobb EMC. Alford also is the EMC's spokesman for the planned $2.2 billion Plant Washington coal-fired power plant in which Cobb EMC is slated to be the largest investor. In addition, Alford is a partner in several land deals with Brown.

Nothing was said to Brumby or the crowd by any of the EMC officials about the 3-0 adverse ruling released that morning from the Georgia Court of Appeals.

Brumby learned of the EMC court setback when he returned to his office after the lunch and read his e-mails - e-mails sent to the MDJ by plaintiffs Butch Thompson and Bo Pounds - not by any legal team connected with Brown and the EMC. After all, fishermen don't like to talk about the big one that got away - and lawyers don't like to talk about the ones they lose.
comments (7)
« Dan Davis wrote on Thursday, Jun 17 at 01:35 AM »
As I continue to engage in personal research on this topic, I am regularly amazed at Mr. Davis' skill at parsing words to misdirect or deflect. For example, he says "It is not true that the bylaws require the proxy master to vote before a meeting in violation of the settlement agreement. The proxy master would not vote until the meeting."

But the plain language of the bylaws does not work in his favor: "The Cooperative Proxy Manager shall receive the proxies until the close of business on the fifth business day prior to the meeting date, and shall count such proxies and present the proxies and the results to the Credentials and Election Committee." For a proxy manager, counting the votes and presenting the count to the election committee is the act of voting, and the language makes it clear that this takes place prior to the annual meeting as a presentation to the committee. Any subsequent "vote" by the proxy manager at the meeting would thus be a symbolic gesture at best; the votes are counted and submitted, and the Board knows the proxy result prior to the election.

Perhaps Mr Davis would like to engage in a formal public debate, case-by-case, on this and other "pro-democratic" actions of the Board.

I didn't think so.

Next time Mr. Davis makes sweeping remarks about factual errors, I suggest that he, as good lawyers tend to do, back up his statements with some sort of evidence.
« Dan Davis wrote on Monday, May 10 at 12:56 AM »
Very interesting tactic: Correct a few minor inaccuracies - none of which has any bearing on the salient issues - as if they are evidence of irresponsible journalism, then make unsubstantiated insinuations as to the MDJ's motive as an attempt to dismiss out of hand the validity of its reporting.

But you can't have it both ways, Mr. Davis (and, by the way, thanks for making me wish I had a different last name). Either facts matter, or they don't. If they don't, then by all means please continue to feel free to cast asperaions with impunity. You certainly do it well.

But if facts ever really matter to you, let's begin the discussion on a long list of facts that lead us away from your portrait of an altruistic and forward-looking EMC Board and toward a less pleasant but more acccurate likeness rife with profound levels of culpability, malfeasance, and greed. Is your righteous indignation and insistence on factual accuracy going to extend into that domain?

I didn't think so.
« 2banonymous wrote on Friday, Apr 23 at 11:52 AM »
Should Sam Olens be our next Attorney General if he will not speak out about Brown and his cronies in his own County? If he allows this to happen in Cobb County where he has served on the BOC as Chairman without denouncing it, does he have the "right stuff" to be Attorney General?
« East Cobber wrote on Friday, Apr 23 at 09:55 AM »
I am not interested in more platitudes or self righteous indignation from Cobb EMC or their counsel. Let me vote !!!
« Cobb EMC Member wrote on Friday, Apr 23 at 09:52 AM »
How much did Dwight Davis charge Cobb EMC ratepayers to write the above letter. I bet it wasn't cheap! SPIN SPIN SPIN...all to the detrimate of Cobb EMC members. It sounds real fair and democratic to allow the Cobb EMC board incumbents to finance their re-election campaigns out of the Cobb EMC treasury.
« EMC Monopoly Member wrote on Friday, Apr 23 at 08:14 AM »
Great job MDJ executives, telling the real story and not some crap from PR rascals on the EMC payroll - the EMC hired lawyer is knee deep in manure !
« Pat H wrote on Friday, Apr 23 at 07:25 AM »
Well Mr. Davis, as a Cobb EMC member for over 30 years, I want a new lawyer representing Cobb. I also want new board members. The fact that you defend the indefensible, Brown and his wife and his cronies, obviously indicates that you are not representing the EMC competently.

Good comments by the MDJ. Integrity in journalism, what a surprising idea. Your paper stands alone in a sea of biased reporting.